commerce essay

Impact Of Cultural Diversity On Acertec Holdings Commerce Essay

Published: 23, March 2015

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Acertec is one of the UK's leading manufactures of engineered steel products that are being used in both automobile as well as construction markets. The company comprises of two divisions, namely; the construction products (BRC) as well as construction markets (Stadco). On its side BRC, supplies just engineered steel products that are being used in concrete construction. On the other hand, Sadco supplies body-in-white pressings as well as sub-assemblies to automotive origin equipment manufactures.

This company is an investment holding firm, previously, it was listed on AIM, and before selling its operating business in April 2010, was just a holding company of a team of businesses, that were operating in the construction, automobile, mining as well as in the civil engineering sectors. As a strategy of restructuring its balance sheet, the company sold 100 percent of its operating businesses to Sadco Automobile Ltd. It retained a 10 percent shareholding in Sadco Automobile Ltd, (Goliath, 2008).

In addition to U.K, Acertec has its operations in Germany, East Asia, as well as Russia. Its customers come all over the world, for instance, Bentley, Jaguar, Land rover, Aston Martin, BMW, as well as Ford. Candover is among the shareholders, owning more than 20 percent of the company. In 2009, the company delisted its stock and as an effect, it became a private company.

Market communication on its part means the promotion of marketing mix. It can also be termed as the communication used in the promotion of products, services, of an organization. In today's world communication is vital factor in shaping the success of the business. Information has to be shared among workers to avoid the failure of the company infrastructures. It ensures a good relationship among co-workers, peers and vendors. It also builds goodwill between people around. Traditionally, marketing communication practitioners just concentrated on creation and execution of printed marketing collateral. However, through research, strategic elements of branding and marketing have been developed, with an objective of ensuring consistency in delivering massage throughout an organization. Many trends that have been occurring in business are attributed to marketing communication, for instance, transition from customer service to customer relations, as well as the transition from human resource to human solutions and so on. Marketing communication in one way or the other helps in the definition of an organization's relation with customers.

Cultural Diversity in Business

Cultural diversity on the other hand means a variety of cultures or societies in a certain region, or in the world as whole. Different societies that have emerged around the world differ markedly from each other, and such differences have existed since time immemorial. The most obvious cultural differences that have existed in the society include language, dress, and traditions. There have been also variations in the manner in which communities organize themselves, in their shared conception of morality, ethics, as well as their environmental interactions. In connection with biodiversity, cultural diversity is much vital for the long-term survival of man kind, though some claim that, this is un-tested hypothesis, (Schwartz, 1997).

For any business to succeed, both internationally and locally, cultural sensitivity has to be at the heart of everything that the company does. There have been many instances under which ignorance on cultural differences as well as poor understanding of foreign languages have cost several companies billions and billions of money in the recalled products as well as goodwill loss. Globalizations in one way or the other has made the world to be too small, for instance, advances that have been made in transportation as well as in the communication and technology departments, both combined with world economy development, have all led to individuals coming from different nations, different languages, culture as well as backgrounds, now communicating, meeting and doing business together as ever thought of, (Ho, & Bill, 2008).

Some observers have claimed that, this new intimacy has resulted to a far much greater understanding amongst individuals, and as an effect, cultural differences are diminishing day after day. On the other hand, the opposite can also not be ignored. This is based on the fact that as individuals come together and interact; there cultural differences become much accentuated as they start realizing that the entire world is not reading from the same book. This principle has adversely affected international business. It is true that very few businesses have managed to escape the need to at a certain point in time to incorporate foreign colleagues, customers or clients. Business is a practice that is international, and for any organization to develop and expand, it is supposed to harness the potentiality that any international stage offers. Around 20b years back, European, British as well as American organizations undertaking business a broad, faced very little competition. This was based on the reality that, there was no rival industrialized nation. As an effect, it was much not difficult to engage in business. However, the world has currently undergone some sort of changes. For instance some of the largest economies in the world include; Japan, China, Brazil, Korea and even India. Due to this change, there has been a shift from the business phrase our way, to lets try and understand your way. This is because, western organizations are feeling the impact; the absence of cultural sensitivity can and does have on business performance, (David, 2006).

Most companies currently are now investing heavily in the provision of language lessons to their staff, to ensure that they have the capability of remaining on the foreign market track, on top of providing cultural sensitivity training so that they are able to deal with issues like etiquette, communication styles, protocol as well as negotiation approaches. In the current competitive world, businesses are appreciating that, cultural sensitivity is an important tool to them when forging longer and most prosperous relations, yet the progress has been too slow. By bad lack, a subconscious sense of cultural superiority still seems to reign. The one that assumes the entire world does business like us, and if they don't, then they need to.

The inhabitants of the world however, have different faith, world views, cultures as well as experience, which have made such like assumption futile. People are all different and as impact, undertaking business globally needs cultural sensitivity. This implies to sense of empathy, creativity as well as flexibility informed by cultural knowledge. As compared to all other things, business learnt the hard way, (Tony, 1999).

In global business, having insight having insight into cultural dynamics of different operating countries , can be far much significant in understanding the reason that has made such individuals to act in the manner they are acting, and provides an appropriate way of acting while one is operating business in that particular community. For more understanding of this theory, Geert Hofstede analysis provides more explanation. This analysis demonstrates that, there are national and regional cultural groupings that affect the behaviour of both the societies as well as organizations, and this is much persistent across time. Since now etiquette, manners as well as cross cultural or intercultural communication have become much critical components of Acertec business, the executives, mangers, employees, as well as the entire global communication team, need to appreciate and respect regional country and cultural differences, (Hofstede, 1980).

Global cultural diversity in brief has been summarized into two simple categories, namely; culture and language. Culture comes in many shapes, for instance, it includes; politics, faith, history, behaviour, mentality as well as lifestyle. Language on the other hand; business world has been littered with poor translations that have resulted to great embracement to dthe business perpetrators due to their lack of cultural sensitivity. There are many mistakes in international business which can be avoided by carrying out basic research in respect to checking the design, concept, colour, shape, packaging, massage and name in the target culture. Most mistakes emerge due to the assumption that, if it is ok with us, then is ok with them. For any organization like Acertec to become much successful in global business, cultural sensitivity has to be the heart of everything they undertake, starting with their personal interaction and relations with clients to the product and/or service they come up with.

Impact Cultural Diversity on Its Global Marketing Communications

Globally, there are different cultural standards being, thinking and acting because of cultural diversification, which influences workplace values as well as business communication. So as an effect, for Acertec Holding ltd to ensure effective global communication and successful business transactions, it has promoted cultural differences and enhanced cultural sensitivity. Marketing across cultures globally has resulted to sociological differences. While there are diversified global cultures for Acertec Holdings to consider, global communities are being influenced by different initiatives. This has affected their global advertisements, some value freedom, in some areas affected its reward for efforts and an entrepreneurial approach.

The presence of cultural consideration has not only resulted to good responses to its global marketing communication strategies, but also affected the company's global image, (Hofstede, 2002).

Massage Tailoring

In many national cultures, reasonable accomplishments in life are considered as a measure of success. Individuals who meet such like standards of success are regarded as highly. In such a circumstance, such cultures have demanded marketing communication strategies which are presented to them along the achievements lines of their objectives. Acertec failure to use similar marketing copy presented to individuals who in most cases consider status in their life due to birthplace, social standing as well as influence made it unacceptable hence poor marketing results in most countries outside Africa. There are some countries which individuals do fear uncertainties, while others are too courageous to start business. In certain cultures, there has been a grimace at the use of some terms, symbols and even colours, repugnant in their life experience. Different colours in some countries a peal more in other countries like the religious societies. For instance, red colour to Chinese is a colour of good luck. In any market globally, another factor that Acertec need to consider when targeting any market is gender. In selling engineered steel materials like concrete supporters, the company needs to know that, most contracts globally are men in some communities like in African countries, while in other countries like India, these who engage in construction are women. Gender esteem also has reasonable implications in some other countries like Japan, Australia and Arabic countries, where men commands ultimate decision authority over their women. Din contrast, countries like Sweden, women have more power in buying decisions.

Political influence

Political influence in one way or the other affects the perception of what individuals ought to hear or read about. Some individuals have only heard or known just recently that they do have a freedom of choice, while others depend on the government to inform them on what is good and what is bad. As an effect, Acertec must have a seal as a government approval in some countries to increase trust in their particular products. On the other hand, in other countries, any mention of the government could make the audient disgusted. In communities where people's thoughts and actions for many years have been suppressed, may not be having experiences of going through rational though procedures. As a result, developing a positive and bold action to buy Acertec products might be much difficult for them. Such like individuals ought to have everything explained to them in every detail and step of the way till they become confident in their buying decisions. If this education is not done, the company might suffer significant international criticism when consumers get wrong information on their product. Just like what Nestle underwent when they brought breast milk substitute in Africa without reducing illiteracy level on the use of their products, Sparrow, (Paul, Brewster, & Harris, 2004).

Special Considerations in the Emerging Markets

Some markets globally like the Indian and China markets, front the charge of new emerging markets son the global business scene, and represents the better part of the world's marketing expansion for many years to come. The structures of families in China, Japan amongst other Asian countries differ greatly from this other in many parts of the world. The consideration of the family commands in all respects, including personal actions as well as investments. Collective considerations are uppermost in the in the peoples minds who lived in these conditions in most cases. This is based on the fact family members who are older; command much respect land influence, so they ought to be logical target audience. One factor that Acertec has to consider before starting to sell cultures in Asia is the avoidance of loss of face. Their culture of business is based on the social standing and the individual's reputations. For anything top bed one. For Chinese top do anything that they consider as demeaning, or anything that reduces their personal standing is taken as being an insult, which in most cases they consider as a loss of face. Acertec has to teach its global marketing communication staff different languages to make them avoid the use of embracing terms in some cultures. This is based on the fact that, the use of embracing terms might be cause some sort of unease on social matters , as this might kill any marketing copy stone.

In addition, there are some cultures globally like for instance; the Asian and most African cultures highly respect their tradition as well as longevity, and as an effect, they usually react positively to copy that puts more efforts on the history as well as the prestige of any form of company that tries to enter their market. In other countries like India, their way of life for hundreds of years has been their collective cultures. In Indian society, the paramount social standing is their caste system. This in one way or the other has presented particular challenges to avoid causing offenses. The cycle of business house has been dominated by Sindhis and the Gujratis, most of them were constructed and still based on values as well ideals. The values of religion have been playing a significant role in most societies. Religion in one way or the other affects every lives aspect of most individuals globally especially in Muslim dominated regions. It affects their response as well as their reaction to any organizations global marketing communication copy. This has affected Acertec selling techniques involving that involves motivational selling; this is based on the fact that, such techniques are considered crass to most Asian cultures while educational, emotive as well as informative data is more readily acceptable.

Effects on brand success. (Ron, 2005)

It is true that global diverse culture has affected has powerfully influenced Acertec brand success. Research has described that, global brand is supposed to be identified with local cultures in the operating country. The association with local cultures in different communities worldwide has proved to have less impact on the purchase probability as compared to the perception that a certain brand is of high quality or just a setting trend; this has been a positive purchase driver of purchase intent for all brands. On the other hand, has higher effect as compared to global brand, if taken to be part of nationwide culture, although, they might lack the acumen of business and deep pockets of multinational brands. They in most cases draw strength from home field advantage. The local culture impact depicts that, product formulation; positioning distribution as well as communication strategy is combined in a manner that makes the brand much successful. This combination changes from one community to the other, as one successful combination in one community, ought to be adjusted so that it can have the capability of building a connection with consumers in other new markets. Amongst all available components in the combination that Acertec has been using, communication has been the most susceptible to the culture influence. It has been shown that, even in the countries that do share the language and have equal socioeconomic standings, for instance, the United States and the United Kingdom, are all divided on cultural diversity reference points, idioms and humour.

Advertising standardization

There are many issues of culture diversity that affects advertising standardization, for instance, there are some cultures which encourage creative talent use across markets. On the negative side, cultural diversity, country regulations as well as differences in the product life cycle makes have made global market communication very difficult. Different cultures might resist campaigns that are imposed from out side some tomes with good reasons, but a times just to preserve their own culture. As an effect, different cultures perceive different advertisement techniques in different ways, and some products are burned from advertising from certain media. For instance businesses in France are not allowed to advertise on TV. Other forms of promotion might also not be allowed in some European cultures do not allow price discrimination between consumers, hence do not allow coupons. Advertisement is affected by language barriers. In such areas, Aertec will have to translate not just into local languages, but also into specific version that is spoken in the region, (Sarah, Celia, & Jackie, 2000).

Conclusion

Globally, cultural diversity has been summarized into two simple categories namely culture and language. It is true that cultural diversity has affected Acertec global marketing communication in different ways in its global operations in one way or the other. As an effect, the holding limited has now turned into intensive lessons, teaching its global marketing communication team different languages and cultures. This will enable it to maintain its position on the global market, as it will be see as appreciating cultural diversity. On top of providing cultural sensitivity training which enables them to deal with issues like etiquette, communication styles, protocol as well as negotiation approaches. In the current competitive world, Acertec is appreciating that, cultural sensitivity is an important tool to them when forging longer and most prosperous relations, yet the progress has been too slow. In global business, Acertec, is trying to have insight into cultural dynamics of different operating regions. This has been seen as far much significant in understanding the reason that has made different individuals to act in the manner they are acting, and provides an appropriate way of acting while they is operating business in that particular community.

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